The Impact of Technological Activities of Multinational Enterprise Subsidiaries on Host Countries

Abstract

Technological innovations determine the competitive advantage of nations and strongly influence government technology policy. How should the U.S. government respond to the technological absorption capabilities of foreign-owned subsidiaries? The objective of this research is to investigate the technological contributions of subsidiaries of multinational corporations to the host country. This study focuses on the subsidiary-host country relationship of non-U.S. multinational subsidiaries operating in the U.S. and is limited to two specific industries: computers and electronics.